Strategic Partners for Domestic Manufacturing

Jul 30, 2016 

Strategic Partners for Domestic Manufacturing

The Government is committed to the goal of achieving self-reliance in our defence capabilities. Accordingly, the concept of ‘Make in India’ is a focal point of the current defence acquisition policy and procedures. The Defence Procurement Procedure (DPP) focuses on giving boost to the ‘Make in India’ initiative of the Government through indigenous design, development and manufacturing of defence equipment, platforms and systems. A new category viz. ‘Buy (Indian-IDDM)’ [Indigenously Designed, Developed and Manufactured] has been introduced as the most preferred category of Procurement. The ‘Make’ procedure has been simplified to ensure increased participation of Indian Industry. There is provision for Government funding of upto 90% in cases involving design and development systems / equipment which necessitate harnessing of critical technologies and which may involve large infrastructure investment. Provisions for involving private industry as Production Agencies and Technology Transfer Partners have been incorporated. The role of MSMEs has also been enhanced in the defence sector.

The V.K. Aatre Task Force was constituted by Government to lay down criteria for selection of the Strategic Partners for various platforms from the Private Sector Industry. It has presented its Report to Government.

This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Dr. Bhola Singh and Shrimati Poonamben Maadam in Lok Sabha.